Setting Up an Installment Agreement
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This agreement allow you to pay your full debt in smaller, more manageable amounts. Installment agreements generally require equal monthly payments. The amount of your installment payments and the number you make will be based on the amount you owe and your ability to pay that amount within the time we can legally collect payment from you. You should be aware, however, that an installment agreement is more costly than paying all the taxes you owe now. As with most revolving credit arrangements, we charge interest and penalties on the unpaid portion of the debt. Another cost associated with an installment agreement is a user fee. This is a one-time fee (currently $52 for direct debit agreements and $105 for non-direct debit agreements) we charge to set up the agreement. For eligible low-income individuals, the fee for entering new agreements will remain $43. If you don't meet the terms of the agreement throughout the life of the agreement, we charge an additional fee of $45, regardless of income level, to reinstate it. If you want to pay off your tax debt through an installment agreement, call the number shown on your bill. If you owe:
Even if you set up an installment agreement, we may still file a Notice of Federal Tax Lien to secure the government's interest until you make your final payment. Note: We can't take any collection actions affecting your property while we consider your request for an installment agreement, while your agreement is in effect, for 30 days after we reject your request for an agreement, or for any period while you appeal the rejection. If you arrange for an installment agreement, you can pay with:
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